FxWirePro: EUR/NZD breaks below 50-DMA, bias lower, good to short rallies

• EUR/NZD trades with a bearish bias, capped below 5-DMA at 1.6890.
   
• The pair facing a double whammy from weak EUR upon a dovish ECB and strong NZD after upbeat comments from NZ Fin Min.
   
• The ECB has kept its interest rates unchanged and announced no changes in asset purchase program.
   
• The meeting showed that ECB is in wait and watch mode for QE exit and policy normalization.
   
• On the other side, kiwi buoyed after NZ Fin Min Robertson said earlier today that he is "Comfortable" with trend in NZ dollar.
   
• Price action has broken below 50-DMA and dipped into daily cloud. Bears now target 100-DMA at 1.6628.
   
• Technical indicators are heavily bearish. Violation at 50-DMA could see further weakness.

Support levels - 1.6785 (23.6% Fib retrace of 1.4534 to 1.7480 rally), 1.6628 (100-DMA), 1.6355 (38.2% Fib)

Resistance levels - 1.6891 (5-DMA), 1.6959 (50-DMA), 1.7146 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-NZD-capped-below-stiff-trendline-resistance-at-17520-good-to-go-short-on-break-below-17268-1039244) has hit all targets.

Recommendation: Good to go short on rallies around 1.68/ 1.6810, SL: 1.6960, TP: 1.6680/ 1.6630/ 1.65

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -83.7799 (Bearish), while Hourly NZD Spot Index was at 102.081 (Bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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